Innovation in life insurance products: the special-rate life annuities
19 November 2020 - online

Presentation of the Paper 02/20 of the DemoLab by MIB Trieste School of Management.

DemoLab examines the demographic dynamics of greater impact and greater relevance, which play a central role in social, economic and political development: demographic change, aging, fertility, population health, migratory flows and labor redistribution.
"The aims of the Laboratory are very ambitious," explains Prof. Ermanno Pitacco, director of DemoLab "we will act on an enormous amount of data, projecting the results from the international to the Italian level down to the regional level. We will analyze at the same time very different biometric data: not only the mortality rate but also fertility, birth rate, immigration and emigration, which has a decisive influence on the demographic pyramid and population rejuvenation."
 

Innovation in life insurance products

The second DemoLab Paper is dedicated to the analysis of the so-called "Special-rate annuities", annuities whose premium is determined by the health conditions of the insured at the time of stipulation.
The critical aspect of these annuities is represented by the uncertainty on mortality data for the various diseases, which causes greater uncertainty in the duration of the annuity.
In order to evaluate these annuities, the DemoLab Team decided to analyze the variability of the results of a portfolio including standard annuities and also Special-rate annuities. The Team projected and constructed innovative models for assessing the risk profile of portfolio including special-rate annuities.
The results are very encouraging and of great interest.
 
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